In a significant turn of events, the worldwide crypto ecosystem underwent a noteworthy downturn after a month-long streak of positive performances. On March 5, Bitcoin (BTC) soared to an unprecedented all-time high of $69,170, boasting a remarkable total market capitalization exceeding $1.4 trillion. However, the flagship cryptocurrency faced a substantial correction, plunging below the $60,000 threshold as the market cooled.
Illustrating Bitcoin’s journey throughout the year, CryptoQuant’s Head of Research, Julio Moreno, presented a comprehensive chart on X. As BTC surpassed the $60,000 milestone, the data showcased the leading digital currency entering the overheated zone, signifying potential market exuberance.
In the aftermath of Bitcoin’s decline, the global cryptocurrency market capitalization also experienced a dip of 1.4% within the last 24 hours, sliding from $2.68 trillion to $2.58 trillion. Conversely, the daily cryptocurrency trading volume surged by 27%, hitting $317 billion in the past 24 hours, as reported by CoinGecko.
Santiment, a market intelligence platform, revealed insights into user sentiments on X and Reddit amid the Bitcoin price drop. Numerous discussions revolved around holding onto crypto assets during the recent market fluctuation. According to Santiment, some users view the price dip as an opportune moment to “buy” Bitcoin, anticipating a potential rally in the near future.
Further analysis from Santiment demonstrated that Bitcoin’s current investor sentiment hovers between neutral and slightly bullish at the current price point, indicating a cautious optimism prevailing in the market.
Despite the broader market downturn, Shiba Inu (SHIB) remains positioned in the bullish zone, according to Santiment. Remarkably, SHIB showcased a remarkable 230% surge over the past seven days, reaching levels not witnessed since late 2021.
